InfraRed NF commits US$60m to mezzanine financing deal in Chengdu, China

InfraRed NF, the leading Greater China real estate investment manager, is pleased to announce the extension of a $60 million financing contract with Heneng Group. Heneng Group is one of the leading middle-income residential developers in Chengdu with annual sales contracts signed of over $700m, a land bank over 2.5 million square metres and over one thousand employees.

The oversubscribed transaction represents a well-structured investment offering equity returns with stronger covenants and controls than a typical public bond. The access to robust security, governed under Hong Kong Law, offers further downside protection. The partner portfolio is predominantly residential and the Fund has taken active controls on multiple proven assets including a mixed-use asset directly linked to the metro and a project opposite a school with a total GFA of over 400,000 sqm. Chengdu is the Western service capital of China with over 15 million people and GDP growth of 8.9%.

Grant Chien, Investment Director of InfraRed NF Investment Advisers commented:

“We are pleased to enter the transaction with a reputable partner in an attractive market which is undergoing a strong recovery. Chengdu is the main service economy in Western China and is anticipated to attract significant investment and regional talent. Our in-depth due diligence provided us confidence that this company’s growth will outpace the industry. This deal reinforces our approach of working with local champions in strong regional economies as we continue to deliver solid returns.”

Enquiries

Tulchan Communications | +65 6222 3765 | InfraRedNF@tulchangroup.com

About InfraRed NF

InfraRed NF is a Hong Kong-based joint venture between InfraRed Capital Partners and Vervain. Established in 2007, InfraRed NF is a leading investor in the Greater China real estate market with a proven track record of delivering superior returns through a combination of mezzanine financing and value-add investing.

InfraRed Capital Partners is a leading global investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Seoul and Sydney and has launched 17 funds including two listed on the London Stock Exchange. With over 130 professionals, it manages in excess of US$10bn of equity in multiple private and listed funds, primarily for institutional investors across the globe.

Vervain (which includes entities operating under the former name of “Nan Fung China”) is a Hong Kong-based private group of companies established in 2004. Vervain has a diversified real estate business, including property investment, property development, project management, real estate private equity investment as well as other financial and mezzanine financing investment. Vervain’s property portfolio comprises high quality residential, commercial, industrial, serviced apartments and hotel properties in Hong Kong, London, New York, Seoul, Tokyo and Vietnam.

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